Call for Legislative Support to Modernise Credit Unions in Northern Ireland

Credit unions in Northern Ireland are seeking support from the Assembly to modernize their services and expand the range of financial products they offer to customers. The Irish League of Credit Unions (ILCU) has presented a policy manifesto at Stormont, supported by Economy Minister Conor Murphy, in an effort to strengthen their presence in the region.

Credit unions are financial service providers that operate on a not-for-profit basis, serving the specific communities in which they are based. However, credit unions in Northern Ireland are lagging behind their counterparts in Great Britain and the Republic of Ireland, where some branches are already providing mortgages. The ILCU has highlighted that one in three people in Northern Ireland are members of credit unions, with the asset book in the region reaching £1.87 billion, including £1.61 billion in savings and £644 million in loans.

The ILCU has urged for the modernization of credit union legislation in Northern Ireland, which is currently almost four decades old, to align it with the legislative frameworks in Great Britain and the Republic of Ireland. This would enable credit unions to develop and offer a wider range of financial products to meet the needs of their members. Additionally, the ILCU has called for financial support to facilitate the introduction of new digital platforms and services, as well as to level the playing field with larger financial institutions. It has also requested for a rates scheme exemption for credit unions, similar to the privileges enjoyed by post offices and rural ATMs.

In its policy manifesto, the ILCU has also advocated for the recognition of credit unions’ role in promoting sustainability within communities, and has urged the Assembly to provide clarity on incentives and regulations for green home improvements.

Economy Minister Conor Murphy has expressed his support for credit unions, highlighting their contribution to providing affordable finance to families and small businesses over the past 60 years. He has committed to establishing a dedicated team within his department to work with the ILCU and the Ulster Federation of Credit Unions to deliver on the priorities outlined in the manifesto. He emphasized that this work will be prioritized and completed within the remaining three years of the mandate.

Martin Fisher, the head of NI for the ILCU, emphasized the role of credit unions as not-for-profit cooperatives that are owned by their members, embodying the power of community in action. He acknowledged the challenges that lie ahead and emphasized the need for government support in the coming mandate. Fisher highlighted the collaborative efforts needed to enhance financial well-being and contribute to future economic growth.

In conclusion, the call for legislative support to modernize credit unions in Northern Ireland aims to address the growing demands of members and to enable credit unions to remain competitive within the evolving financial landscape.